Flow Theory

Flow Theory

Bringing Real Cashflow to On-Chain Lending with Real-Time Interest Payments

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The problem Flow Theory solves

Flow Theory is revolutionizing fixed-rate credit by bringing real cashflow to on-chain lending with real-time interest payments. Right now when you borrow on Aave, Compound, etc, interest starts formulaically accruing on your debt, but lenders don’t get timely compensation for the risk they’re taking on by lending to you AND they don’t get timely compensation for the risk they’re taking on by lending to you.

This results in: Higher interest rates for borrowers and lower rates for lenders on these protocols

Yet, it’s very real in TradFi where We pay down our loans in instalments and lenders realize cash flow continuously.

Our "Flow Theory" is that the continuous repayment of on-chain debt will incentivize better terms of credit and improve the experience of on-chain credit markets.

The Flow Theory Offering is about fixed-interest borrowing and lending where:

Interest must be paid in a continuous Superfluid money stream 🌊
Lenders don’t have to claim interest - it shows up directly in their wallets ✨
Because Flow Theory routes interest payments straight to the wallets of lenders, none of The Flow Theory’s TVL is from accrued interest (🔥)

We used:

Superfluid for money streaming and distribution
Polygon and Optimism for L2 deployment and scaling
The Graph to query for superfluid streams and IDA indices. This allows us to show real-time streams of money to the user
Let’s bring real and direct cashflow to Web3 lending. Let’s bring real and direct cashflow to Web3 credit.

Challenges I ran into

We sadly couldn't get through to implementing the Tellor Oracle in time, so take our word on asset prices for now (lol).

Discussion